http://investark.com/singtel-stability-in-uncertain-times/
Singtel (Z74) is a telecommunications group headquartered in Singapore which provide a wide range of services including fixed, mobile, data, internet, TV and infocomms technology as well as digital solutions. Their main operations are in Singapore and Australia with the Australian arm operating under the Optus brand. Singtel is the largest listed Singapore company on the SGX by market capitalization, which amounts to $57.3 bil based on its current share price.
For its fiscal first quarter of 2016, the company reported operating revenue of $4.2 bil, an increase of 1.5% year on year. Profit attributable to owners of the company increased 12.8% year on year to $941 mil. With respect to its stock performance, the share price of Singtel is currently trading at $3.58, which is close to its 52 week low of $3.48 and 22% below than its 52 week high of $4.57. This translates to a PE of 15.2 based on its annualised year to date earnings, which is about 11% lower than its 3Y average PE of 16.9. From a price to book perspective, Singtel is trading at 2.3x which is also about 11% lower compared to its 3Y average. Dividends wise, the company currently has a dividend yield of about 4.7%.
The recent sell down in the equities market has opened up a lot of value opportunities for investors to buy companies at discounted prices. Accordingly, the stock price of Singtel has also dropped close to 15% from its high in July 2015, presenting good value. For the past 3 years, revenue and profits for the company have been pretty stable with hardly any growth. Moving forward, it is expected that earnings will remain solid but growth will probably be limited. All in all, this is a good fundamental stock with a decent dividend that can be kept for stability and also adds diversification to an income portfolio.